News

Actions

A court ruling halts construction on Montana's proposed mental health facility in Laurel

Still 2026-08-27 175841_1.12.1.jpg
Posted

A Yellowstone County district judge has stopped all construction, groundbreaking, and permitting on the state's proposed forensic mental health facility in Laurel, and the delay is costing Montana taxpayers more than $8,000 a day.

A court ruling halts construction on Montana's proposed mental health facility in Laurel

The state purchased the land for $4.25 million and now sits on plans, contractors, and deliveries.

Judge Ed Zink ruled Wednesday that the state failed to adequately analyze the availability, capacity, and supply of water to the facility, as well as the actual daily water demand the facility would have.

The judge also sent the final environmental assessment back to the state to further investigate water issues.

That document is required by the Montana Environmental Policy Act before the state can move forward with bringing the forensic facility to Laurel.

Water concerns are not new to the area.

Amber Zahn and her family live on land next to the proposed hospital.

She says water pressure has been low periodically since a Love's Travel Stop a few miles away started doing business.

"I can only run one faucet at a time or one hose at a time," said Amber Zahn, who lives on land next to the proposed site. "I can't run multiple washers, you know, whether it be a clothes washer, a dishwasher. I can't have a sprinkler going. I can't have a shower going. It has to be one at a time. There's just not enough pressure to operate multiple things."

The complaint against the state's Board of Investments and the Department of Public Health and Human Services was filed by Laurel C.A.R.E.D., a citizens group.

"The Montana Environmental Policy Act allows for a lawsuit like Laurel C.A.R.E.D.'s to evaluate whether the analysis was arbitrary and capricious," said Liz Forster, the attorney for the group. "Meaning basically it had no rational basis. It was not reasonably explained."

Neither Yellowstone County commissioners nor Laurel Mayor Chris Vogele would comment on the ruling, since they are not part of the lawsuit.

The Laurel City Council pushed through a zoning moratorium in July on all annexations — in part to stop the state from accessing the city's already taxed water and sewer supply.

Mayor Vogele did reach out to the Board of Investments asking for a meeting. His request was denied.

The Board of Investments and the Department of Public Health and Human Services have not responded to MTN'S requests for comment.

"If they can prove that this is an appropriate site and that the long term impacts are not going to negatively affect its residents, then so be it," said Zahn.

The court order does not specify how many days the state has to produce a revised environmental assessment.  

This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.